Tencent second-quarter revenue blows previous estimates on gaming power

Tencent second-quarter profit blows past estimates on gaming strength

By Sijia Jiang

HONG KONG (Reuters) – Tencent Holdings on Wednesday posted a better-than-expected 35% rise in quarterly internet revenue, as its gaming arm regained development momentum on a thaw in new approvals by China after a freeze for many of final yr.

The world’s largest gaming agency by income reported 24.14 billion yuan ($3.44 billion) in internet revenue for the second quarter ended June, versus a median estimate of 20.74 billion yuan from 13 analysts polled by Refinitiv.

Income rose 21% to 88.eight billion yuan, versus a median forecast of 93.four billion yuan from 16 analysts.

Smartphone gaming income rose 26% to 22.2 billion yuan, helped by main titles together with “Honour of Kings”, “Good World Cellular”, “Peacekeeper Elite”, in addition to new releases.

Tencent mentioned it launched 10 new video games within the quarter, versus just one within the earlier quarter.

In 2018, Tencent turned in its slowest annual revenue development in 13 years on the suspension within the approval for brand spanking new video games.

Approvals restarted in December, with Tencent receiving permission to launch “Good World Cellular” within the January-March quarter.

“FinTech and Enterprise Companies”, a brand new income class arrange this yr that features cost and cloud providers, generated 22.9 billion yuan, up 37%, helped by speedy development in business cost providers.

“Amid the evolving macro-economic and aggressive challenges, we proceed to spend money on enhancing our platforms, providers and applied sciences, for higher supporting our customers and enterprise prospects,” Tencent mentioned in a submitting.

($1 = 7.0173 Chinese language yuan)

(Reporting by Sijia Jiang; Enhancing by Himani Sarkar)

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